Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here is one large-cap stock that still has big upside potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Deere (DE)
Market Cap: $184.4 billion
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Steer Clear of DE?
- Sales tumbled by 7.4% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have dipped by 21.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $683.08 per share, Deere trades at 32.6x forward P/E. If you’re considering DE for your portfolio, see our FREE research report to learn more.
Kroger (KR)
Market Cap: $35.44 billion
With a sprawling network of over 2,400 locations offering digital pickup services, Kroger (NYSE: KR) operates supermarkets, pharmacies, and fuel centers across 35 states, offering customers groceries, household items, and private-label products.
Why Do We Think Twice About KR?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Limited expansion of stores suggests it’s prioritizing efficiency over growth at this stage
- Gross margin of 23.9% is below its competitors, leaving less money for marketing and promotions
Kroger is trading at $60.14 per share, or 11.4x forward P/E. Check out our free in-depth research report to learn more about why KR doesn’t pass our bar.
One Large-Cap Stock to Watch:
State Street (STT)
Market Cap: $50.23 billion
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE: STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
Why Does STT Stand Out?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Management team has demonstrated it can invest in profitable ventures through its 10.4% five-year return on equity
State Street’s stock price of $181.17 implies a valuation ratio of 12.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
